Airtel says rights issue oversubscribed, Tikona buy done

Airtel says rights issue oversubscribed, Tikona buy done

Airtel says rights issue oversubscribed, Tikona buy doneAirtel says rights issue oversubscribed, Tikona buy doneThe developments happened on a day when UK’s financial regulator cleared Airtel Africa’s ‘registration document’ which detailed information the company’s plans to raise over $1 billion by listing on the London Stock Exchange.
ETTelecom | May 30, 2019, 11:39AM ISTBharti Airtel Wednesday said its rights issue of over 113.3 crore shares has been oversubscribed, with bids for over 119.6 crore stocks. The company also said that its acquisition of Tikona Digital’s 4G assets was complete.

The developments happened on a day when UK’s financial regulator cleared Airtel Africa’s ‘registration document’ which detailed information the company’s plans to raise over $1 billion by listing on the London Stock Exchange.

On over subscription of the rights issue, the company said, “The total number of applications received were 27,335 for 1,196,630,354 equity shares which is 105.561 per cent of the issue size in terms of equity shares applied for.”

The Sunil Bharti Mittal-led carrier had floated a rights issue of up to 1,133,591,075 shares, aggregating to up to Rs 24,939 crore. The proceeds are meant to reduce the Rs 1.15 lakh crore debt of the company, and help it compete with deep-pocketed Reliance Jio.

In the rights issues, the promoter group firms also participated and the transactions led to decline in holding of promoter group firms from 67.14% in March 2019 to 62.71% in May.

Bharti Airtel’s majority shareholder Bharti Telecom’s shareholding came down to 41.24%, which held 50.1% as of March end. The Mittal family and Singapore telecom firm Singtel own majority of Bharti Telecom.

Shares in parent Bharti Airtel fell 1.9% to Rs339 on the BSE Wednesday, in line with the broader weak markets.

The Singapore government entities now jointly hold over 24.73 crore shares.

Bharti Airtel, in a separate announcement, said that it had merged Bharti Digital Networks Pvt Ltd, formerly known as Tikona Digital Networks Pvt Ltd, with itself. Airtel had announced its decision to acquire 4G business of Tikona Networks, including broadband spectrum and 350 sites across five circles, in March 2017. The deal size was about Rs 1,600 crore.

Tikona had 20 MHz spectrum in the 2,300-MHz band, which has the second largest ecosystem of 4G devices, in Gujarat, eastern UP, western UP, Rajasthan and Himachal Pradesh circles.

Meanwhile, the UK’s financial regulator cleared Airtel Africa’s ‘registration document’. Airtel Africa aims to raise over $1 billion by offering 25% stake to the public via LSE. It also plans to list on the Nigerian stock exchange. The proceeds will again be directed towards reducing debt and competing in the market.

Airtel Africa has already raised $1.45 billion from seven investors including Temasek Holdings Pte, SoftBank Group Corp, Warburg Pincus and Qatar Investment Authority.

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